Three rate rises, and the budget's reset to property tax
The variable rate has moved up 0.75% since the start of the year. The 2026-27 Federal Budget delivered the biggest reset to property investment taxation in decades. This edition covers what both mean for owners, investors, and buyers, and what we are seeing at the desk.
Rate rises and the federal budget
Multiple rate rises over the last few months.
The variable rate has moved up by 0.75% since the start of the year. Three RBA hikes through the first half of 2026 took the cash rate from 3.60% to 4.35%.
If you are currently on variable rates for your loan, three things worth checking together:
- Whether your rate is still sharp against the current market.
- Whether your property has gained enough in value to bring your LVR down, which can unlock better pricing.
- Whether a refinance or restructure would change your monthly position.
We do free reviews. If you would like to understand what this rate environment means for your situation, get in touch and we can work through it.
Federal Budget 2026-27, what changed.
The 2026-27 Federal Budget delivered the biggest reset to property investment taxation in decades. The detail matters more than the headlines, and most of it is grandfathered. Four things worth holding in mind:
- Property held before 7:30pm on 12 May 2026 is fully grandfathered. No change, ever.
- Established property bought between Budget night and 30 June 2027 keeps negative gearing in that window.
- From 1 July 2027, negative gearing on established residential property can only offset other property income.
- Newly built homes are exempt from both the NG and the CGT changes. New builds now have a structural tax advantage from 1 July 2027 onwards.
Whether it is the rate move since settlement or the budget changes ahead of 1 July 2027, our budget tool on the website lets you choose your position and see what the changes actually mean for your circumstances. It runs on the published measures rather than headlines, with the dates, dollar amounts, and grandfathering rules laid out.
From the desk
Macquarie tightens policy post-budget.
Three policy changes at one of the major lenders affect investor and refinance pathways directly. Macquarie made the following changes:
- Removed the negative gearing add-back from servicing calculations.
- Paused new home loans to trusts and corporate entities.
- Tightened cash-out caps at 80% LVR on owner-occupier refinances.
What it means in practice: investor structures that previously routed to Macquarie for sharper pricing at 80 to 85% LVR now need to look at other banks. Owner-occupiers planning a debt consolidation refinance may need a different lender shortlist than they did three months ago.
We have stepped up conversations with owner-occupiers and investors over the past two weeks to help them navigate the market post-budget. If any of this overlaps with what you are working on, it is worth a short call.
Client story: Expat investor refinance
An Australian living and working overseas had an investment loan that had not been reviewed in years. Non-resident status sharply narrows the eligible lender pool, and most expats stay with their original lender assuming there is no better option available.
- Refinanced the $530K loan to a lender that prices expat borrowers without the usual non-resident penalty.
- Took the rate down 0.95%.
- Released $70K of equity in the same step.
- Around $5,000 in annual interest savings.
The pattern repeats for almost every expat who has not reviewed their loan in two or more years. Worth a look if it sounds familiar.
Reviewing your home loan?
We do free reviews. If you would like to understand what this rate environment means for your situation, whether your current loan is still competitive, or what your options look like for buying or refinancing, reach out directly.